eBay (EBAY.US) Q4 performance exceeds expectations, but dim sales outlook causes stock price to drop significantly.

On Thursday morning Beijing time, eBay (EBAY.US) announced its fourth-quarter performance for 2024. The data shows that the company's Q4 revenue was $2.6 billion, with earnings per share of $1.25, both exceeding market expectations. In the fourth quarter, eBay's Gross Merchandise Volume (GMV) increased by 4% to $19.3 billion, surpassing market expectations of $19.1 billion. By the end of 2024, eBay had 134 million active buyers, also exceeding market expectations. However, the strong performance during the holiday season was overshadowed by dim prospects. eBay expects revenue for the current quarter to be lower than analysts' expectations, with CEO Jamie Iannone attributing this to weak demand in Germany and the UK. eBay expects revenue for the first quarter of 2025 to be between $2.52 billion and $2.56 billion, with adjusted earnings per share of $1.32 to $1.36. In comparison, analysts' average expectations were for revenue of $2.6 billion and earnings per share of $1.33. Iannone said eBay is focusing on promoting refurbished products to attract shoppers looking for discounts to offset the impact of U.S. tariffs. He said sales of these refurbished products are growing faster than new products, currently accounting for around 40% of the platform's total merchandise sales value. He said, "When prices rise, people look for value." To stem the decline in market share, eBay has been focusing on niche categories such as automotive parts, luxury goods, and collectibles. The company recently completed the acquisition of Los Angeles startup Caramel, which provides software for selling second-hand cars. eBay is also relying on advertising and payments to increase revenue. As of the time of writing, eBay's stock fell by 8.59% in after-hours trading, to $63.20.